Painting : Zan Newstrom
Rethinking Philanthropy
Steps Towards a More Human Future
Many good things in our world require money to accomplish ; many good people have needs that require money they don’t have. Many chronic problems exist in the world, and special problems – earthquakes, floods, devastating droughts and fires - happen all the time. The finances of our governments are often such today that they simply can't meet these problems and needs. Whether governments even should address certain needs of citizens, is in the meantime hotly debated. The question is pressing, and becomes more so : how, legitimately, in a world of now over seven billion people, can these many needs be met ? One solution clearly won’t fit all situations – but why not make a start with at least part of this large question ?
Three Kinds of Money
Money itself takes essentially three main forms – namely :
- Purchase money for goods and services
- Loan money, to fund projects and enterprises of many kinds ; and
- Gift money, including philanthropy
The basis for establishing fair and correct prices for goods and services, the flow and availability of capital as loan money – these are things important to consider. For now though, I’d like to explore this third kind of money, and third sharp point of concern regarding human need : namely, purposeful, systematic gifting and philanthropy.
Background for the ideas to follow can be gained in the threefold social idea of Rudolf Steiner, as discussed elsewhere on this website (resource) (resource) (resource). Human culture, Steiner observed, consists of three core areas of activity. Briefly :
The Sphere of Rights
Rights, in this “ threefold “ perspective, concern the regulation of conflicts in human social relations - specifically infringements on the dignity, safety or wellbeing of one group or individual by another individual or group. To be free from such infringements is a basic need of every human being. In the threefold perspective, “ right’s life “ concerns the effort to secure fair rights and protections for all persons, on an equal basis, regardless of social or economic status.
Economic Life
In the threefold organism of society, economic life concerns the basic needs of life of all human beings: food, shelter, clothing, and all else that has to do with maintaining these needs. It includes the production, distribution and consumption of goods, and the communications and interactions needed to accomplish them. Because the needs to be met in economic life are common to all people, the necessary condition of this sphere is a spirit of brotherhood, cooperation and goodwill.
"Spiritual-Cultural Life"
In the threefold social organism, spiritual-cultural life has to do with all human beings bring to each other on the basis of individual gifts and abilities. This includes the realms of religious, spiritual, philosophical and moral insight, teaching and education, medicine and healing, the arts, and creativity and invention in all their forms. The special requirement of the spiritual-cultural life is freedom : namely that each individual may develop and exercise his or her own abilities without interference ; and choose his or her own church, teachers, healers, remedies etc, freely and without hindrance.
In Steiner’s threefold understanding , the areas of rights, economic and spiritual-cultural life each unfold their strength best when they work independently. He recommends at first, therefore, a certain separation of the three - or more exactly, a reduction of undue control, influence or interference of one sphere in the work of the others. This initial separation, he observes, will create a basis for their later fruitful interaction and cooperation, and promote the health of the whole. The threefold idea is not a utopian plan or prescription for society, nor a reaction to any other social system. The initial separation of influences and their later interaction are also not seen rigidly, or as a formula. The threefold idea is better seen as a set of scientific observations of society, of tendencies already striving to unfold, of relationships that naturally arise and create health as soon as they get the chance.
What Each Sphere Contributes
Rights life. When active and effective, rights life creates conditions of safety, dignity and freedom in which social life can unfold in an optimal way. Rules and agreements that reduce harm, coercion or infringements on freedom create conditions for both economic and spiritual-cultural life to thrive. They build and protect a space within which the human individual can unfold "a life worth living". Over time, they limit harm and expense to society from direct crime and injury between people ; but also from unfair or harmful economic products and practices, destruction of the environment etc.
Economic life establishes conditions for the material survival and wellbeing of society. This realm of life works creatively with materials from the earth, transforming them into goods and products, increasing their value and usefulness. Improvements to efficiency in the production and distribution of goods enhance their value further. Applied knowledge of natural processes, technology, the needs and nature of the human being, all contribute to the satisfaction of our earthly needs.
Beyond the meeting of human physical needs, economic life also has this special characteristic : that by adding value to what nature provides, it has a tendency and capacity to create wealth.
Spiritual-cultural life. The special contribution of this realm of life to the threefold social organism, is to enhance the quality of human life. Education, the arts, healing work, religious and spiritual life, research, scholarship, skilled communication and technical innovation all do this. Arising in the inner world of the human being, the spiritual-cultural life radiates benefits outward into society.
Often this radiating effect isn't noticed, is not valued properly, because it's subtle. It doesn't generate products for human beings to use, but rather unlocks and cultivates potentials in them. It preserves what's good and what's possible in the human being, and builds a bridge for it to become actual.
The benefits of spiritual-cultural life to society are visible in the present only in part ; their more complete effects only in the longer course of time. In its best manifestations, spiritual-cultural life creates a good and human future, both for individual lives and for society.
Spiritual Cultural and Economic Life : A Special Relationship
The economic sphere produces goods and products - but we can also ask : how ? What factors contribute to the success of economic life ?
Sufficient natural resources are of course a necessity, if economic life is to prosper ; also sufficient capital for needed projects and enterprises ; and conditions of fairness, peace and safety in the place where work is carried out. These are the familiar elements of economic life. Yet there’s more.
The economic sphere has a continuous need for people : people who are well educated and healthy, have good judgment and are ethical ; are flexible, creative, able to work cooperatively with others. It needs the results of research of various kinds, expertise from the realms of technology, finance, the law. But each of these also depends, first of all, on the skills and insights of individuals. Economic life depends continuously on these abilities of individuals - abilities groomed and cultivated precisely in the spiritual-cultural realm of life. It’s very little noticed in our society, but the economic sphere depends critically on the spiritual cultural realm for a skilled, educated and well-prepared work force.
Where Does Wealth GO ?
As noted earlier, when activities of economic life go well and successfully, they tend to generate wealth. What becomes of this wealth ? In our prevailing system, the greatest part of "profits" go to those who organize, manage and particularly, finance economic life ; effectively, to those perceived as its main drivers and creative agents. Practically speaking, ever more wealth settles into these relatively few hands - more, very probably, than they actually need or could ever spend ; wealth that may accrue to any number of their future generations.
In such a system one’s perspective – and perception of others – easily becomes distorted. Self-interest may become the core value of economic life, competition the core method, personal gain the core goal of life. The concept of brotherhood seems quaint and unrealistic here, cooperation and goodwill expendable - as may be large portions of the slower, less clever remainder of humanity itself.
A further, near irresistible temptation where great wealth is at stake, is for economic interests to intervene in the sphere of government – in the threefold perspective, the sphere of rights. Money spent to support friendly candidates, influence policy or public opinion, creates great leverage - money seemingly well spent. But this concentration of wealth and power has risks.
In an economy of global scale, the effects of errors or misconduct in a relatively small controlling circle tend to magnify. On the fringes of the world economy, meanwhile, millions - hundreds of millions - may walk a razor's edge of poverty, dependent between life and death on fluctuations of interest or currency rates, commodity prices, the rise and fall of distant markets. Any error of concepts, insight, judgment at the lofty summit - not to mention any criminal activity – endangers the whole. The collapse of the financial derivatives bubble of 2008 - and the worldwide crisis it triggered - are frightening examples.
The Case for Philanthropy
As we've seen, the gifts of spiritual-cultural life to society are indirect - their full value unfolds only over time, and so goes mostly unnoticed. This is perhaps why, any time production and economic growth in society decline, spending on spiritual-cultural activities tends to decline even more ; and why such fierce pressure is brought to bear on governments to cut programs serving spiritual-cultural life, e.g. medical care and public education. But right or wrong in the long term for government to be involved, funds are lost that may not be replaced from other sources.
The spiritual-cultural realm has a still more basic problem. In this sphere of life, payment is most often in terms of “fees for services rendered”. But the activities of spiritual cultural life – for example the teaching of children or the care of the sick - do not by nature create wealth. In the very best of times, income from fees will not be enough to fund the building of schools or hospitals, buy equipment and furniture, fund research, provide grants and scholarships, or any number of other capital or special needs. Extra needs will always arise, for which money must be found
In the meantime as noted, economic life depends on the spiritual-cultural life : depends for the fruits of science and research, for educated, healthy, creative, ethically and morally sound workers, to name just a few such needs. To complete the cycle of facts and relationships : spiritual social life makes economic life possible ; and economic life, by its nature, creates wealth.
It's not just a matter of kindness therefore, that the economic sphere would contribute to the needs of science, education, medicine, to the preparation and wellbeing of its work force - but even one of self interest. And it's not just fair and reasonable but possible - because the financial means to help flows constantly to hand.
Beyond the fair needs of economic life to develop and maintain itself, simple insight would indicate that needs of the spiritual-cultural life are an optimal destination for wealth created in this sphere. This, in short, is a first strong case for philanthropy.
Next : Rethinking Philanthropy : Ways, Means - and Reality Checks
Steps Towards a More Human Future
Many good things in our world require money to accomplish ; many good people have needs that require money they don’t have. Many chronic problems exist in the world, and special problems – earthquakes, floods, devastating droughts and fires - happen all the time. The finances of our governments are often such today that they simply can't meet these problems and needs. Whether governments even should address certain needs of citizens, is in the meantime hotly debated. The question is pressing, and becomes more so : how, legitimately, in a world of now over seven billion people, can these many needs be met ? One solution clearly won’t fit all situations – but why not make a start with at least part of this large question ?
Three Kinds of Money
Money itself takes essentially three main forms – namely :
- Purchase money for goods and services
- Loan money, to fund projects and enterprises of many kinds ; and
- Gift money, including philanthropy
The basis for establishing fair and correct prices for goods and services, the flow and availability of capital as loan money – these are things important to consider. For now though, I’d like to explore this third kind of money, and third sharp point of concern regarding human need : namely, purposeful, systematic gifting and philanthropy.
Background for the ideas to follow can be gained in the threefold social idea of Rudolf Steiner, as discussed elsewhere on this website (resource) (resource) (resource). Human culture, Steiner observed, consists of three core areas of activity. Briefly :
The Sphere of Rights
Rights, in this “ threefold “ perspective, concern the regulation of conflicts in human social relations - specifically infringements on the dignity, safety or wellbeing of one group or individual by another individual or group. To be free from such infringements is a basic need of every human being. In the threefold perspective, “ right’s life “ concerns the effort to secure fair rights and protections for all persons, on an equal basis, regardless of social or economic status.
Economic Life
In the threefold organism of society, economic life concerns the basic needs of life of all human beings: food, shelter, clothing, and all else that has to do with maintaining these needs. It includes the production, distribution and consumption of goods, and the communications and interactions needed to accomplish them. Because the needs to be met in economic life are common to all people, the necessary condition of this sphere is a spirit of brotherhood, cooperation and goodwill.
"Spiritual-Cultural Life"
In the threefold social organism, spiritual-cultural life has to do with all human beings bring to each other on the basis of individual gifts and abilities. This includes the realms of religious, spiritual, philosophical and moral insight, teaching and education, medicine and healing, the arts, and creativity and invention in all their forms. The special requirement of the spiritual-cultural life is freedom : namely that each individual may develop and exercise his or her own abilities without interference ; and choose his or her own church, teachers, healers, remedies etc, freely and without hindrance.
In Steiner’s threefold understanding , the areas of rights, economic and spiritual-cultural life each unfold their strength best when they work independently. He recommends at first, therefore, a certain separation of the three - or more exactly, a reduction of undue control, influence or interference of one sphere in the work of the others. This initial separation, he observes, will create a basis for their later fruitful interaction and cooperation, and promote the health of the whole. The threefold idea is not a utopian plan or prescription for society, nor a reaction to any other social system. The initial separation of influences and their later interaction are also not seen rigidly, or as a formula. The threefold idea is better seen as a set of scientific observations of society, of tendencies already striving to unfold, of relationships that naturally arise and create health as soon as they get the chance.
What Each Sphere Contributes
Rights life. When active and effective, rights life creates conditions of safety, dignity and freedom in which social life can unfold in an optimal way. Rules and agreements that reduce harm, coercion or infringements on freedom create conditions for both economic and spiritual-cultural life to thrive. They build and protect a space within which the human individual can unfold "a life worth living". Over time, they limit harm and expense to society from direct crime and injury between people ; but also from unfair or harmful economic products and practices, destruction of the environment etc.
Economic life establishes conditions for the material survival and wellbeing of society. This realm of life works creatively with materials from the earth, transforming them into goods and products, increasing their value and usefulness. Improvements to efficiency in the production and distribution of goods enhance their value further. Applied knowledge of natural processes, technology, the needs and nature of the human being, all contribute to the satisfaction of our earthly needs.
Beyond the meeting of human physical needs, economic life also has this special characteristic : that by adding value to what nature provides, it has a tendency and capacity to create wealth.
Spiritual-cultural life. The special contribution of this realm of life to the threefold social organism, is to enhance the quality of human life. Education, the arts, healing work, religious and spiritual life, research, scholarship, skilled communication and technical innovation all do this. Arising in the inner world of the human being, the spiritual-cultural life radiates benefits outward into society.
Often this radiating effect isn't noticed, is not valued properly, because it's subtle. It doesn't generate products for human beings to use, but rather unlocks and cultivates potentials in them. It preserves what's good and what's possible in the human being, and builds a bridge for it to become actual.
The benefits of spiritual-cultural life to society are visible in the present only in part ; their more complete effects only in the longer course of time. In its best manifestations, spiritual-cultural life creates a good and human future, both for individual lives and for society.
Spiritual Cultural and Economic Life : A Special Relationship
The economic sphere produces goods and products - but we can also ask : how ? What factors contribute to the success of economic life ?
Sufficient natural resources are of course a necessity, if economic life is to prosper ; also sufficient capital for needed projects and enterprises ; and conditions of fairness, peace and safety in the place where work is carried out. These are the familiar elements of economic life. Yet there’s more.
The economic sphere has a continuous need for people : people who are well educated and healthy, have good judgment and are ethical ; are flexible, creative, able to work cooperatively with others. It needs the results of research of various kinds, expertise from the realms of technology, finance, the law. But each of these also depends, first of all, on the skills and insights of individuals. Economic life depends continuously on these abilities of individuals - abilities groomed and cultivated precisely in the spiritual-cultural realm of life. It’s very little noticed in our society, but the economic sphere depends critically on the spiritual cultural realm for a skilled, educated and well-prepared work force.
Where Does Wealth GO ?
As noted earlier, when activities of economic life go well and successfully, they tend to generate wealth. What becomes of this wealth ? In our prevailing system, the greatest part of "profits" go to those who organize, manage and particularly, finance economic life ; effectively, to those perceived as its main drivers and creative agents. Practically speaking, ever more wealth settles into these relatively few hands - more, very probably, than they actually need or could ever spend ; wealth that may accrue to any number of their future generations.
In such a system one’s perspective – and perception of others – easily becomes distorted. Self-interest may become the core value of economic life, competition the core method, personal gain the core goal of life. The concept of brotherhood seems quaint and unrealistic here, cooperation and goodwill expendable - as may be large portions of the slower, less clever remainder of humanity itself.
A further, near irresistible temptation where great wealth is at stake, is for economic interests to intervene in the sphere of government – in the threefold perspective, the sphere of rights. Money spent to support friendly candidates, influence policy or public opinion, creates great leverage - money seemingly well spent. But this concentration of wealth and power has risks.
In an economy of global scale, the effects of errors or misconduct in a relatively small controlling circle tend to magnify. On the fringes of the world economy, meanwhile, millions - hundreds of millions - may walk a razor's edge of poverty, dependent between life and death on fluctuations of interest or currency rates, commodity prices, the rise and fall of distant markets. Any error of concepts, insight, judgment at the lofty summit - not to mention any criminal activity – endangers the whole. The collapse of the financial derivatives bubble of 2008 - and the worldwide crisis it triggered - are frightening examples.
The Case for Philanthropy
As we've seen, the gifts of spiritual-cultural life to society are indirect - their full value unfolds only over time, and so goes mostly unnoticed. This is perhaps why, any time production and economic growth in society decline, spending on spiritual-cultural activities tends to decline even more ; and why such fierce pressure is brought to bear on governments to cut programs serving spiritual-cultural life, e.g. medical care and public education. But right or wrong in the long term for government to be involved, funds are lost that may not be replaced from other sources.
The spiritual-cultural realm has a still more basic problem. In this sphere of life, payment is most often in terms of “fees for services rendered”. But the activities of spiritual cultural life – for example the teaching of children or the care of the sick - do not by nature create wealth. In the very best of times, income from fees will not be enough to fund the building of schools or hospitals, buy equipment and furniture, fund research, provide grants and scholarships, or any number of other capital or special needs. Extra needs will always arise, for which money must be found
In the meantime as noted, economic life depends on the spiritual-cultural life : depends for the fruits of science and research, for educated, healthy, creative, ethically and morally sound workers, to name just a few such needs. To complete the cycle of facts and relationships : spiritual social life makes economic life possible ; and economic life, by its nature, creates wealth.
It's not just a matter of kindness therefore, that the economic sphere would contribute to the needs of science, education, medicine, to the preparation and wellbeing of its work force - but even one of self interest. And it's not just fair and reasonable but possible - because the financial means to help flows constantly to hand.
Beyond the fair needs of economic life to develop and maintain itself, simple insight would indicate that needs of the spiritual-cultural life are an optimal destination for wealth created in this sphere. This, in short, is a first strong case for philanthropy.
Next : Rethinking Philanthropy : Ways, Means - and Reality Checks
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